SurveyMonkey stock shoots up as more businesses buy in

Business


SurveyMonkey stock shot up nearly 15 percent Wednesday, a day after the company reported solid earnings for its first quarter as a public company and a growing enterprise user base.

Shares climbed as much as 19 percent to $13.45 in midday trading, after initially jumping just 3 percent immediately following the report Tuesday evening. It reverses a downward trend for the company, which went public in September. Before Wednesday’s surge, the stock had shed more than 30 percent since its IPO.

The company reported third-quarter revenue of $65.2 million, a year-over-year jump of 18 percent. It also reported jumps in total paid users, average revenue per user and in revenue generated from its sales-assisted enterprise business segment.

SurveyMonkey ended the quarter with 3,200 enterprise clients, up 10 percent from the second quarter. That segment accounted for 12 percent of total revenue during the quarter.

“We’re really growing like kind of a leading software SaaS business there in that side of the business, and I think you’re just going to continue to see us really put up steady momentum in that 12 percent of our revenue that comes from sales will increase year-over-year,” CEO Zander Lurie said on the company’s earnings call.

SurveyMonkey reported 621,000 paid users across 300,000 organizations at the end of the third quarter. Enterprise clients likely account for the company’s rising average revenue per user. The company reported ARPU of $418, an increase of 14.8 percent year-over-year.

Programming Note: For more on SurveyMonkey, watch CEO Zander Lurie’s interview on “Mad Money” Wednesday at 6 p.m. ET.



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